Posted on May 30, 2012 10:49:15 PM
THE POWER generation unit of distribution utility Manila Electric Co. (Meralco) hopes to bag tax breaks for a planned 600-megawatt, coal-fired power plant in Subic before the government finalizes stricter rules for incentives.
“The Subic project is moving and we recently filed for our Board of Investments (BoI) registration with the proper endorsement from the Energy department,” said Meralco President and Chief Executive Oscar S. Reyes in an interview yesterday.
Firms successfully registered with the BoI are granted incentives such as income tax holidays and duty-free importation of equipment under the annually drafted Investment Priorities Plan.
The latest proposal up for approval at Malacañang, however, seeks to limit incentives only to renewable power projects or those that locate in far-flung provinces or Mindanao where supply is tight.
Sought for comment, Trade Undersecretary Cristino L. Panlilio said “[Meralco’s application] can still fall under the present investment priorities plan.”
Meralco’s subsidiary Meralco PowerGen Corp. partnered with Aboitiz Power Corp. and Taiwan Cogeneration Corp. to build the coal-fired power plant in Subic which is expected to be completed in 2015. The plant is estimated to cost around $1.2 billion.
Part of the funding for the facility will be sourced through a consortium of banks composed of BDO Unibank, First Metro Investment Corp. and the Philippine National Bank.
Mr. Reyes went on to note the firm is also in discussions with the National Grid Corporation of the Philippines for transmission lines that will distribute power from the plant to the electric grid.
Earlier this year, the Subic Bay Metropolitan Authority (SBMA) reviewed its contract with Meralco and Aboitiz so it will be more economically beneficial to Subic.
Mr. Reyes said the “certain matters that the SBMA raised with us are being addressed as well.”
He added the firm is in constant communication with stakeholders in the area.
The Energy department earlier said it is working out an agreement that will be beneficial for all parties regarding the Subic coal project.
Meralco is entering the power generation sector as it wants to exert more control over power prices. It plans to source from its own facilities as well as enter into lower priced power supply agreements. -- ENJD source
Firms successfully registered with the BoI are granted incentives such as income tax holidays and duty-free importation of equipment under the annually drafted Investment Priorities Plan.
The latest proposal up for approval at Malacañang, however, seeks to limit incentives only to renewable power projects or those that locate in far-flung provinces or Mindanao where supply is tight.
Sought for comment, Trade Undersecretary Cristino L. Panlilio said “[Meralco’s application] can still fall under the present investment priorities plan.”
Meralco’s subsidiary Meralco PowerGen Corp. partnered with Aboitiz Power Corp. and Taiwan Cogeneration Corp. to build the coal-fired power plant in Subic which is expected to be completed in 2015. The plant is estimated to cost around $1.2 billion.
Part of the funding for the facility will be sourced through a consortium of banks composed of BDO Unibank, First Metro Investment Corp. and the Philippine National Bank.
Mr. Reyes went on to note the firm is also in discussions with the National Grid Corporation of the Philippines for transmission lines that will distribute power from the plant to the electric grid.
Earlier this year, the Subic Bay Metropolitan Authority (SBMA) reviewed its contract with Meralco and Aboitiz so it will be more economically beneficial to Subic.
Mr. Reyes said the “certain matters that the SBMA raised with us are being addressed as well.”
He added the firm is in constant communication with stakeholders in the area.
The Energy department earlier said it is working out an agreement that will be beneficial for all parties regarding the Subic coal project.
Meralco is entering the power generation sector as it wants to exert more control over power prices. It plans to source from its own facilities as well as enter into lower priced power supply agreements. -- ENJD source
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